The cannabis industry has had a great decade. The federal government made hemp products legal in 2018. The new legalization of hemp has led to a whole new industry in CBD and other hemp products. The COVID pandemic is another major boost for the marijuana industry. Let’s take a look at the top trends in the cannabis Industry for 2022.
The United States spent nearly 18 billion dollars on legal cannabis in 2020. This represents a 67% increase over 2019, and 42% of cannabis users either started using or increased their consumption in 2020. The legalization of marijuana has brought an enormous industry to the country. This is causing trends to emerge in the market.
It is becoming more apparent that cannabis, hemp, and marijuana are losing their stigma. You can now find articles in mainstream magazines like Vogue and The Wall Street Journal about marijuana usage. The average American is becoming more comfortable with the idea of smoking marijuana or using an edible to get some THC.
The acceptance of marijuana has increased to the extent that 91% of Americans believe it should be legalized at the federal level. The market has grown so quickly that the industry had to revise their initial forecast of 28.3 Billion in sales for 2020 to 30 Billion due to the rapid expansion of legalization in states.
The stigma associated with marijuana and other cannabis products that was once associated with hippies is quickly disappearing. Forecasters predict that hemp-derived products will soon be a major part of the holistic wellness market. They also see marijuana becoming as common and accepted to purchase as alcohol.
Expanding Market Segments
Certain market segments have seen some trends over the past few years for cannabis use, and these markets are expected to continue expanding. Here are some trends in the cannabis industry.
Generation Z (born in the late 1990s or mid-2000s).
This generation has not only grown into the digital age, but also reached adulthood at the same time as states began to legalize marijuana and the stigma began to fade. They are the first generation to grow up with cannabis as the norm. This has led to them being the biggest cannabis consumers of any other generation. The industry reports that sales of cannabis to Generation Z customers increased 127% in 2020. Compare this to the 46% increase in sales among Millennials or the 29% increase in sales for Generation X, and Gen Z is clearly the hottest market.
Women & THC
The solid 33% majority of cannabis users are women, which is growing. Contrary to their male counterparts, women purchase more cannabis flowers than men. However, they prefer other forms of cannabis such as topicals, tinctures and vape pens. Reports show that women in the ages between 30-40 years old are the most frequent users of cannabis, with 29.4%. Close behind is the 27.35% for those younger than 30. Although they enjoy cannabis, older women in their 60s and 50s prefer to consume it in edible form.
Consumers who are looking to experience THC and other cannabis products for their first time are increasingly turning to cannabis-infused beverages. The sales of marijuana-infused beverages rose by a staggering 40% in major markets such as California, Nevada, Washington, and Washington, compared to the prior year. Sales increased from $67.8 to $95.2 million in 2020.
Experts believe this is due to the fact that these drinks can give off a buzz in much less time (10-15 minutes) than if they were eaten. Micro-dosing is easy and can achieve the desired effect. This is a huge advantage for new users. Many people want to reduce alcohol consumption to live a healthier life. Marijuana-infused beverages offer a great alternative to beer and mixed drinks.
Scientific Backing In the Cannabis Industry
The lack of scientific evidence to support their claims has been a constant argument against legalizing cannabis products for medical purposes. They will soon have nothing to stand on. Nearly 23,000 scientific papers about cannabis have been published since 2010. Researchers are increasingly proving cannabis’ medical benefits, and increasing amounts of money are being invested in research.
According to forecasters, this approval by the scientific community will result in a scientifically supported classification system of cannabis compounds that will better correlate evidence-based effects with indications. This will lead to greater acceptance of cannabis-based medicinal products in the holistic and pharmaceutical sectors.
Brand Awareness And Loyalty
It’s a wild wild west for the cannabis market at the moment. A record number of cannabis distributors have sprung up in response to the huge increase in cannabis sales. Each one is trying to grab a piece of the action. Customers will settle on their favorite products as the market grows, increasing brand awareness and loyalty. A few companies will soon be the “Johnson & Johnsons” of the cannabis industry. While there will be room for the small guy, you will likely see the rise in the big guys who will be the brand ambassadors and a well-known name to all those who use cannabis.
Island Products Is Keeping Up With The Latest Trends In the Cannabis Industry
At Island Product’s, we keep an eye on the latest sales trends in the cannabis industry and pass them along to our loyal retail and white label customers to help grow their businesses. If you’re not already one of our happy partners, please contact us today to get started.